Implementing Behavioral Concepts into Banking Theory: The Impact of Loss Aversion on Collateralization

In standard bank theoretic models agents are assumed to be fully rational expected utility maximizers. This fact ignores the huge amount of evidence for anomalies in human behavior found by psychologists. In this paper we argue that the implementation of behavioral concepts into banking theory might increase the predictive power of the models. As an example we consider a loan market and discuss the impact of loss aversion on the degree of collateralization in equilibrium. The very well established concept loss aversion predicts entrepreneurs to pay much more attention to the potential loss of some of their initial wealth due to a collateralized loan than they would do as expected utility maximizers. This results in a higher effort choice which in turn increases the success probability of the loan financed project. Optimal levels of collateralization are derived for different degrees of loss aversion and the problem of private information about the degree of loss aversion is addressed. It is shown that in specific situations banks can offer self selecting pairs of contracts that costlessly eliminate the private information problem.

Nematode control in 'green' ruminant production systems

Collectively, nematode parasites of domestic ruminants continue to pose the greatest disease problem in grazing livestock systems worldwide, despite the powerful and extensive chemotherapeutic arsenal available for their control. The widespread development of anthelmintic resistance, particularly in nematode parasites of small ruminants, and the trend towards nonchemical (ecological, organic, green) farming of livestock has provided an impetus for the research and development of alternative parasite control methods. This article provides a brief overview of the non-chemotherapeutic options for parasite control and how they might play a role either in organic farming or in other low-input farming systems

The ecological handicap of the tropics

The long-forgotten subject of the ecological disadvantages of the tropics has been brought to the fore once again by the catastrophic droughts in the Sahel and in southern Africa. The naive belief that economic development is simply a matter of finding the right technology and of spreading scientific knowledge must give way to the acknowledgement that the “development threshold” of the tropical countries is very substantial and complex, and that surpassing it will be a long and wearisome business

Five Factor Model Personality Profiles of University of North Dakota Unmanned Aircraft Systems Students

A great deal of effort has been made to quantify personality characteristics in the pilots of manned aircraft. However, analysis of similar characteristics of individuals interested in piloting Unmanned Aircraft (UA) remains relatively unexplored. This research examined the Five Factor Model (FFM) personality profiles of individuals pursuing Unmanned Aircraft Systems (UAS) studies at the University of North Dakota (UND). Using the Big Five Inventory (BFI) general personality index, the responses of a UAS Student group (N=65) were compared to a Normative sample group (N=248) previously collected by Petros (2013). Apart from the two highest scoring factors in each group (i.e. conscientiousness (C) for the UAS sample and agreeableness (A) for the normative sample), the ordinal rank of mean factor scores showed similarity between samples. The sample group, comprised of students with either Pre UAS Operations, or UAS Operations declared as a first or second major, scored significantly lower in neuroticism (N) (p\u3c0.001), significantly higher in openness (O) (p\u3c0.01), and significantly higher in conscientiousness (C) (p\u3c0.001) than individuals in the Normative sample. Recommendations for future research encourage the inclusion of the BFI facet scores offered by Soto and John (2008), or application of the Revised NEO Personality Inventory for assessment of more specific traits within the domains of the FFM. Also recommended is the exploration of these personality traits as they appear within individuals, both civil and military, who have completed training for the operation of UAS platforms

Domestication of ruminant livestock and the impact of nematode parasites:possible implications for the reindeer industry

In a balanced ecological system, both host and nematode parasite populations are firmly controlled by a complex array of interacting factors. However domestication of livestock has tipped the balance in favour of the parasites. This is due to increasing the proportion of susceptible animals in the herd or flock (lactating females and weaned young animals), increasing stocking rate, increasing productivity demands and decreasing the movement of the animals. In contrast with microbial infections, where multiplication takes place entirely within the host, metazoan parasites have both a parasitic phase and a free-living phase. Every worm present has been separately acquired by the ingestion of free-living stages on pasture. Immunity to nematodes develops slowly, it is labile, and its maintenance is dependent upon a good nutritional state of the animal. Consequently, worm parasites are ubiquitous wherever livestock are kept and they impose a constant and often a high infectious pressure on grazing animals. Nematode infections in grazing livestock are almost always a mixture of species. All have deleterious effects and collectively lead to chronic ill thrift. Economic evaluations repeatedly show that the major losses due to parasites are on animal production, rather than on mortality. This paper focuses on the problems of nematode parasites; problems associated with drug use (anthelmintic resistance, environmental impact) and costs of nematode infections for the common ruminant livestock industries (cattle, sheep, goats), with possible analogies for the semi-domesticated reindeer industry

Implementing behavioral concepts into banking theory : the impact of loss acersion on collateralization

In standard bank theoretic models agents are assumed to be fully rational expected utility maximizers. This fact ignores the huge amount of evidence for anomalies in human behavior found by psychologists. In this paper we argue that the implementation of behavioral concepts into banking theory might increase the predictive power of the models. As an example we consider a loan market and discuss the impact of loss aversion on the degree of collateralization in equilibrium. The very well established concept loss aversion predicts entrepreneurs to pay much more attention to the potential loss of some of their initial wealth due to a collateralized loan than they would do as expected utility maximizers. This results in a higher effort choice which in turn increases the success probability of the loan financed project. Optimal levels of collateralization are derived for different degrees of loss aversion and the problem of private information about the degree of loss aversion is addressed. It is shown that in specific situations banks can offer self selecting pairs of contracts that costlessly eliminate the private information problem

Auxin responsiveness of a novel cytochrome P450 in rice coleoptiles

An early auxin-induced gene was isolated from rice (Oryza sativa L. subsp. japonica cv Nihonmasari) coleoptiles by a fluorescent-labeled differential display screen. The full-length gene contains conserved domains characteristic for the cytochrome P450 superfamily. This gene, designated as CYP87A3, was weakly expressed in dark-grown coleoptiles but was up-regulated rapidly and transiently when coleoptile segments were incubated in 5 m indole-3-acetic acid. This induction by auxin could not be suppressed by cycloheximide. Depletion of segments from endogenous auxin reduced the amount of CYP87A3 transcripts. The CYP87A3 transcript level was rapidly, although transiently, up-regulated in response to light as well. The observed pattern of gene regulation might indicate a role in the suppression of auxin-induced coleoptile growth. The role of CYP87A3 is discussed with respect to auxin signaling in the regulation of coleoptile growth

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